settling judgements

My almost ex-husband did not show up (or even open the envelope) to court when sued by Portfolio Recovery Associates. So there is a judgment with my name on it, even though they sent it in both our names, to his address, and I was never notified of the pending court case. We had already been separated for a year and I never lived at that address. Now the divorce will soon be final and his sister is providing some money to clear up some joint debt, if I will make some concessions in the final divorce agreement. The other creditors have settled but PRA (actually their "legal" department, reperesenting them) have not been forthcoming in negotiating any kind of settlement comparable to the other creditors. They want an amount quite higher than all the others. We were going to do a bankruptcy when his sister stepped forward, which I said was a possibility. But also, I told them I would fight this anyway because I was never informed of this suit by PRA and I have proof of the original letter sent to the wrong address. Even though the legal department contacted them, they did not get back to them with a counter offer and it's been dragging for three weeks. They are clearly unmotivated by our desire to settle, even though after next week's court date is over, there will be no available cash to settle with. His sister will only send money if she sees the settlement offer. WHAT WOULD YOU DO? WHY ARE THEY ACTING SO AMBIVALENT, MAYBE THEY DON'T BELIEVE ME WHEN I SAY AFTER THIS - NO MONEY. What would you do? Also his sister wanted to pay 20%, which the others have accepted (pretty close anyway) but they want 50% instead. She will NOT give us that high a percentage, only if it's a "good deal" for him. I am on family medical leave, behind one month in my rent, my husband pays child support living paycheck to paycheck, and we have two teenagers and two households to support. Time is running out PRA!